Taxi Insurance

If you are a taxi driver, or are a considering becoming one, you will need to insure your vehicle. Of course, taxi insurance is a little different to conventional car insurance and is quite often more expensive due to the increased risk involved.

What to consider when looking for private hire insurance

Insuring a vehicle for private hire use can be a little more difficult than insuring a personal vehicle - after all, a taxi needs to be practical for its purpose, so buying a small hatchback with a smaller engine capacity is not really a choice for those looking for cheap taxi insurance.
This often means that you are forced to buy a large, fuel hungry vehicle with a large engine which can be costly in terms of both insurance and fuel - the high mileage typically done by taxi drivers often exacerbating the matter.

What can you do to save money on your taxi insurance?

There are things you can do to save yourself money however. For example, diesel vehicles are less thirsty, and will often be cheaper to run in the long run, despite being more expensive per litre of fuel. You should also check the car insurance group of any vehicle you are looking to purchase - a lower group often means not only are you more likely to get cheap taxi insurance, but that your vehicle will also be safer and cheaper to repair should you ever have an accident.

Of course, insurers will still consider your driving history when you apply for a taxi insurance quote online, and for this reason (amongst others) it is advisable for you to keep your license clean - a speeding conviction can make your premium around 20% more expensive, for example. You will also find that your taxi insurance will get cheaper as time goes on, in similar fashion to 'normal' car insurance - for example, once you have held your taxi badge for 12 months you may find that your premiums decrease, and drivers with a history of driving company vehicles will sometimes receive a discount from their insurers.

What types of private hire and taxi insurance are available?

There are also a number of different types of taxi insurance you can purchase, the three main ones being Policyholder Only, Named Driver, and Any Driver over Set Age. Policyholder only is generally cheaper to purchase, as the more names added to the policy the more expensive it will become.
You should also consider purchasing taxi breakdown cover - many private hire insurance providers offer this with their insurance, and as such paying a little more for it can often work out to be a good financial move. The same also applies to public liability insurance; as you will be transporting members of the public it is a good idea to cover yourself should they be injured in your vehicle and decide to sue.